There comes a time in the lives of millions of people when emergency financial help is needed. For some people there are not very many options available when it comes to getting additional money when it is necessary. It is easy to fall into financial traps when the need is urgent. As easy as these traps are to get involved with, they are even harder to get out of. Many desperate people have ended up in worse situations than before they decided on the easy financial options. Some of them look and sound good but are really a means of getting deeper into debt, then losing it all.
What is a payday loan?
A payday loan is not as it appears. These types of loans offer a quick fix with consequences that are never ending. A Payday loan is a loan that is given to patrons until their next pay day. It sounds great in theory. Before signing the papers for this type of loan, you may notice the percentage rate on the papers, but your need is so great that you do not give it much thought. Payday loans often have an interest rate of up to 300%. This actually means that you will pay back about three to four times than amount that you borrowed. If you are unable to make the entire payment when it is due, the amount grows because of the interest rate. After a while, this loan becomes impossible to pay, and these creditors may even pull repayment directly from your bank account. You find yourself borrowing more money with high interest rates to pay off the first one. Payday loans lead to a vicious cycle of being in debt.
The payroll loan
This type of loan is to help people who have financial emergencies and need to borrow money that will not cost them an arm and a leg to repay. Certain companies work with employer payroll systems to loan eligible candidates an amount of money, then have the repayments deducted through the employer’s payroll department. The money comes directly to the person in need, but the payments are made so that they will not be noticeable by the employee. On time payments are assured, and credit ratings are enhanced from on time payments of payroll loans. BMG Money is a company who specializes in payroll loans, and works with employers to help determine borrower’s ability to pay. An easy, affordable way to take care of financial emergencies, or whenever extra money is needed.
BMG Money also handles allotment loans
which are largely associated with those employed with the Federal Government. After determining the ability to pay, the company makes a loan, and the recipient sets up an allotment to go to the company for the repayment. Many other employers use this form of providing their employees with a method of having extra money when it is needed. Pay back is easy, and the interest rates are reasonable. Choosing an affordable loan with lower interest rates are the options available for those who are employed and whose payroll department has this this pay back feature.
Loans made until payday are easy for anyone to get. The only requirement is that you have the means of repaying the loans, and usually a checking account. This is one of the worst types of loans to get involved with for anyone. When emergencies happen, take the time to apply for a conventional loan if your credit will allow. Payday loans prey of the poor, generally operate out of lower income neighborhoods, keeping those stricken by poverty – in poverty. Many people have lost more than the cost of paying back a loan. Credit ratings have also been lowered due to this unethical practice.
We advise everybody to do their research before taking out any type of loan and weigh all options. Understanding loan terminology, interest rates
, and savings solutions are all steps on the road to financial freedom.